5 /Feb/ 2018

Criterion of a ribā-based transaction

Q .What are the boundaries of ribā-based transactions? And is it true that ribā is confined to loans?

A: Ribā can arise from selling and buying in the same way it may arise from a loan. Ribā arising from a sale transaction is to sell an item — normally sold by weight/ volume — in exchange for something of the same category in Islamic law plus extra.